Push for NES to round up Nashville electric bills dies in the Metro Council

A resolution supported by Mayor David Briley's administration to request that Nashville Electric Service round up electric bills of Davidson County residents to raise money for a program to help low-income homeowners died in the Metro Council on Tuesday.

The Metro Council, at the request of lead sponsor Councilwoman Brenda Haywood, voted 24-8 to indefinitely defer the resolution, which led to its automatic withdrawal.

It came after more than an hour of debate. Although the resolution was non-binding and only encouraged a new round-up policy, some critics said its passage would give the NES board "political cover" to move forward with a plan that some council members compared to "stealing."

Nashville Electric Service(Photo11: Nashville Electric Service)

"If it was insignificant, we wouldn't be voting on it and debating it on the floor," said Councilwoman Tanaka Vercher, who chairs the council's Budget and Finance Committee. "Although it's non-binding, it does have an impact on our community."

Briley backs a round-up plan as a way to help build revenue for a new NES program called Home Energy Uplift, which provides whole-home energy improvements to limited-income families who own homes in Davidson County.

Several of the council's liberal members voted for the resolution.

But at issue for many council members was how the resolution would specifically encourage an opt-out round-up approach in which a customer would have to proactively remove themselves, or else their electric bill would automatically be rounded up to the nearest dollar amount.

Brenda Haywood(Photo11: Submitted)

For example, a monthly bill of $23.59 would instead be charged as $24. On average, customers would be paying about 50 additional cents per month, or $6, under a round-up program.

Councilman Brett Withers, who supported the resolution, noted that the participation rate of a round-up electric bill program is significantly higher under an opt-out format as opposed to an opt-in arrangement.

Others like Councilman Anthony Davis said such an initiative — used in many other cities — would be one way the council could take action to help affordable housing, long a rallying cry in city hall.

But Councilwoman Sheri Weiner said the opt-out language gave her "heartburn," adding that, "We teach our kids to not take without asking."

After more than a dozen council members ultimately spoke up on the resolution, it became clear that it lacked support for passage.

Haywood, who represents parts of Whites Creek, which includes many low-income families, had opened up discussion by calling the round-up program "far-reaching." She said many people would benefit.

But by the end of the debate, Haywood said she was satisfied by simply starting a conversation about a round-up program.

"I deem this a victory," she said, before withdrawing the resolution.

Memphis and Knoxville both have round-up electric bill programs where ratepayers must opt out if they don't want to pay the extra surcharge.

NES has estimated that an opt-out approach would increase funding for the Home Energy Uplift program from $50,000 a year to $1.5 million. It would allow 180 homes to be weatherized on an annual basis.

The Home Energy Uplift program — available to qualified Davidson County homeowners — has retrofitted 77 homes, resulting in $486 in utility-bill savings per home, since its inception in May. The program began with a $1 million contribution from TVA. NES also allows ratepayers to opt-in and pay $1 more to their monthly bills to go toward the weatherization initiative.

NES had distanced itself from the resolution in a statement last month that said, "The non-binding Round-Up resolution is being presented by a group of Metro Council members, not NES."